The Investment Association, a trading organization representing British investment managers, is lobbying to launch funds traded on the blockchain with digital tokens instead of traditional stocks.
The Investment Association, a trading organization representing British investment managers, is lobbying for the launch of blockchain-traded funds with digital tokens instead of traditional securities. Members of the association propose to the British authorities and financial regulators to approve the formation of a working group to study methods for creating new products and services using distributed ledger technology.
The purpose of the Investment Association is to save the capital of end investors and simplify the existing procedures for buying and selling mutual funds. Investment Association Executive Director Chris Cummings called for increasing the competitiveness of national financial services through blockchain.
“Big innovation will increase the overall competitiveness of the UK equity asset industry and improve the value, efficiency and quality of the investment experience,” Cummings said.
Blockchain-traded securities could become available to the British by the end of the second quarter of 2023 if the Financial Conduct Authority (FCA) gives permission to launch such funds. The fintech group FundAdminChain is currently partnering with the London Stock Exchange and four global asset managers to develop tokenized funds.
In February, the Bank of Russia registered the first platform for issuing precious metal-pegged tokens, Atomyze. The first issuer on the platform
was the Global Palladium Fund (GPF), which launched Exchange Traded Commodities (ETC) payment instruments backed by Norilsk Nickel metals on six key European exchanges, including London and Frankfurt. Atomyze ecosystem platforms are located in Russia, USA and Switzerland.
